Paypal does a bunch of totally ridiculous things that seem blatantly illegal and at the least extremely unethical and dishonest. Not the least of which is they employ a lot of people here to put up fake defenses for them I can see by reading other ripoff reports. No way a company that has 183 reviews averaging one out of five star ratings on the better business bureau trustlink website (http://www.trustlink.org/) can have a legitimate army of fans running to their defense overhere. This company is some serious scum.
Besides their absurdly high price gouging level fees they mislead consumers into risky behavior to protect their own hide at the expense of their customers. Whenever there is a questionable account they block your ability to pay by credit card and claim they are doing this to protect you but then encourage you to pay by bank account which is MUCH more risky for the consumer. [continued below]....
..... When you pay somebody that rips you off with your bank account the money is gone and it is never coming back unless the police catch the culprit and return your funds. If you pay with a credit card you always have dispute as a recourse. This is a blatant example of paypal protecting themselves at your expense, lying about the reason and giving you false and misleading information that encourages you to make a decision that is not in your own best interest.
What else? I recently sent a payment to a friend and instead of processing the payment paypal decided to just steal my money or at the very least help themselves to an interest free loan they were not authorized or entitled to. I made a transfer from my bank to my friend, the payment was accepted, we both received confirmations. 1 - 2 days later paypal sent me a message saying they have limited my account (no legitimate reason given) and I will have to jump through all kinds of bullshit hoops to unlock it (stuff I should never have to do). My inclination is OK F YOU paypal Im not using you anymore. But I login to find they have stolen my money. Instead of just rejecting the transaction they took the money from my account and then just decided to lock it down in limbo. Unless I jump through ridiculous hoops and provide them with personal documentation they have no right to ask for they have effectively stolen my money. My paypal account is nearly 10 years old and has always been in good standing.
These people are absolute human garbage. Boycott them.